securing & facilitating north american trade with one global system

Securing & facilitating North American trade with ONE

global systemGrapevine, Texas, 16 October 2011

Agenda

1. IRU: 60 years of experience in facilitating and securing international trade and cross border trucking

2. Facilitating and securing international trade and cross border trucking through global multilateral mechanisms

3. Facilitating and securing international trade and cross border trucking through dedicated IRU IT applications

4. How can IRU contribute to further securing and facilitating American trade and cross border trucking?

5. Next steps

(c) International Road Transport Union (IRU) 2011

IRU: 60 years of experience in facilitating and securing

international trade and cross border trucking


Part 1

This is the IRU


UK Switzerland

Evolution of IRU Membership

Created1948

National Associations from 8 founding countries

Belgium Denmark France Netherlands

Norway Sweden

2011180 Members 74 Countries

9/11 Worldwide Security Requirements changed forever


IRU: Facilitating and securing

international trade through global multilateral

mechanisms


Part 2

The TIR System

The tried and tested multilateral facilitation and security instrument for international transport and trade.

Based on TIR Convention of 1975. Provides world-wide coverage.


TIR Geographical Scope

68

13 In Negotiation Process

Contracting Parties


TIR is multi-modal

TIR is multi-modal - road, rail, maritime, waterways and air transport – so long as one part of the journey is by road.


TIR Convention

Safe

TIR

& IR

U

TIR

-EPD

Mut

ual R

ecog

nitio

nof

Cus

tom

s C

ontr

ols

Con

trol

led

Acc

ess

Inte

rnat

iona

l Cha

inof

Gua

rant

ee

Secu

re v

ehic

les

and

cont

aine

rs

TIR

Car

net

Pillars of the TIR System


TIR meets WCO SAFE requirements for Advance Cargo Information


The four core elements of WCO SAFE are:Provision of Advanced

Cargo Information

Pre-departure

examination

1Mutual

recognition & Controlled

Access 2 3

Risk Management to security and

safety

4

BenefitsFor

Trade

Communication Platform between AEO & Authorities

Risk Management in TIR Convention (e.g. Annex 10)

3 4Electronic Pre-declaration

21


WCO SAFE and AEO requirements can be fully satisfied by TIR

USCOC study confirms TIR as best instrument to implement WCO Safe

Framework


IRU: Facilitating and securing

international trade and cross border trucking through

dedicated IRU IT Applications


Part 3

Challenges & Opportunities

Computerization is on• Paper documents are gradually being replaced by electronic ones

9/11 changed security requirements forever• Security programs are being implemented (C-TPAT, PIP, AEO, ...)• Electronic submission of advance cargo information are becoming a

must (WCO SAFE)• Each country is sovereign in implementing processes and rules.

Efforts towards mutual recognition and harmonization are progressing but slowly

How to comply with strengthened rules and processes while further facilitating and securing trade ?

• TIR along with proven IT tools provides a valuable answer


TIR IT Risk Management Tools:IRU TIR-EPD

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11001101001101011011011001010101110101010111011110010101010010111001010101110111101111101110010101011101011001010101

1100110100110110110110010101011010 1101010100 110101101001001110100010001011101011010111001101111012

110011010011010110110010101011010 1101010100 1101011010 0101000100 1010111010 0010111100 110101011011001010101100110100110

1100110100110110110110010101011010 1101010100 110101101001001110100010001011101011010 1110111100 1010111011 00111 11011 11010

TIRElectronicPre-Declaration

Connecting Business and Customsfor facilitating and securing international trade


Electronic Advance Cargo InfoIRU TIR-EPD Single Window Concept

Benefits: this exchange of advance information facilitates

pre-arrival risk analysis and makes border crossings simpler,

more secure and faster.

TIR-EPD

National Customs System

Country A


Country B


NCTS


Customs authorities confirm reception of the message, validate the guarantee and

release the cargo for transit.

2Traders & Carriers submit free-of-charge electronic

pre-declarations to Customs authorities in different

countries

1

TIR IT Risk Management Tools: IRU Real Time SafeTIR (RTS)

24/7 TIR Carnet guarantee status and validity check through web portal

Automatic TIR Carnet validity check through direct link between Customs and IRU IT systems

Automatic transmission of TIR Customs data to the IRU

Connecting Business and Customsto facilitate and secure international trade


CustomsMoscow

IRU Geneva

SafeTIR data

Real Time SafeTIR: •SafeTIR Customs data is sent by Customs in real time as soon as the TIR transport is terminated

• Information is made available to all relevant actors

What is the status of the TIR Carnet ?

The status of the TIR Carnet is : • Valid (with following details:

Holder ID, validity date, Issuing Association name)

• Invalid• Not issued/False/other

situations

Increased Security thanks to IRU RTS

Real Time SafeTIR and

TIR-EPD provide security

to allow the issuance of

$1billion/day in guarantees


IRU: How can IRU/TIR contribute to

further securing and facilitating North American

trade and cross border trucking?


Part 4

USA Electronic Pre-Declaration Requirements

ACE, the Automated Commercial Environment, is the commercial trade processing system being developed by U.S. Customs and Border Protection (CBP) to facilitate

legitimate trade and strengthen border security


http://www.cbp.gov/xp/cgov/home.xml

Canadian Electronic Pre-Declaration Requirements

The eManifest initiative is the third phase of the Advance Commercial Information (ACI) program. When fully implemented, eManifest will require trade partners in all modes of

transport (air, marine, road and rail) to submit cargo, crew/passenger, conveyance, secondary and importer data to the Canada Border Services Agency (CBSA) prior to

arrival at the border.

Customs

Cargo Data

Conveyance data

Cargo Acknowledgment

Conveyance Acknowledgment

Trader

Carrier


North AmericanAEO Programs Requirements

Various programs co-exist in North America, implying going through several certification steps


Financial Guarantee Requirements

Cross border operations require financial securities to be provided depending on the amount of duty and taxes payable on the goods being transported


IRU Contribution to securing North American Trade

eManifest

Cargo Data

Conveyance data



Trader

Carrier

TIR-EPD

Real-Time• SafeTI

R

Data/Acknow.

Data/Acknow.

Connecting Business and Customsthrough an internationally tried and tested system


TIR AEO

TIR Guarantee

Data/Acknow.

Data/Acknow.

http://www.cbp.gov/xp/cgov/trade/automated/modernization/

http://www.ccm-c-tpat.ca/index.php

IRU Contribution to securing North American Trade

eManifest

Cargo Data

Conveyance data



Trader

Carrier

TIR-EPD

Real-Time• SafeTI

R

Data/Acknow.

Data/Acknow.

Connecting Business and Customsthrough an internationally tried and tested system


TIR AEO

TIR Guarantee

Data/Acknow.

Data/Acknow.

IRU/TIR meet:- C-TPAT/PIP/AEO requirements- ACE and eManifest electronic requirements- All financial guarantee requirements- Customs clearance requirements at destination

http://www.cbp.gov/xp/cgov/trade/automated/modernization/

http://www.ccm-c-tpat.ca/index.php

Benefits of IRU TIR for US trade

Tried and tested single window for trade facilitation and security allowing secure door to door seamless transport with green light border crossing process through interface with Customs/security systems, freeing Customs time for effective targeted anti-terrorist inspections.

Effective anti-terrorist and anti-corruption measures preventing need to negotiate several hundred bilateral agreements on security.

IRU TIR can include US C-TPAT, Canadian PIP, and Mexican Empresa Certificada requirements.

Multilateral mutually-recognized legal framework and guarantee system already in place (TIR Convention and WCO SAFE).

Solid, cost effective financial guarantee system (10 ¢ for $100 bank guarantee) which would be of greatest benefit to US exporters.

No IT development cost for Customs and National Associations Short implementation time after agreement signature (1-6 months overall). US can shape the TIR system to meet its requirements before others impose theirs.


Tried and tested single window for trade facilitation and security allowing secure door to door seamless transport with green light border crossing process through interface with Customs/security systems, freeing Customs time for effective targeted anti-terrorist inspections.

Effective anti-terrorist and anti-corruption measures preventing need to negotiate several hundred bilateral agreements on security.

IRU TIR can include US C-TPAT, Canadian PIP, and Mexican Empresa Certificada requirements.

Multilateral mutually-recognized legal framework and guarantee system already in place (TIR Convention and WCO SAFE).

Solid, cost effective financial guarantee system (10 ¢ for $100 bank guarantee) which would be of greatest benefit to US exporters.

No IT development cost for Customs and National Associations Short implementation time after agreement signature (1-6 months overall). US can shape the TIR system to meet its requirements before others impose theirs.

Benefits of IRU TIR for US trade


Strategic step to facilitating and securing trade between North America, the Western

Hemisphere, and the rest of the world.

Next steps


Part 5

Next steps

www.iru.org


securing & facilitating north american trade with one global system

Documents

international transport

iru securing

international trade

dedicated iru

air transport

multimodal road

cross border trucking

tir systempage